E
Sustainable Environment
S
Prosperous Society
G
Corporate Governance

Happy Workplace

China Airlines is dedicated to establishing a caring and protective enterprise. Through providing employees with total care and support, enhancing employees professional competence, enforcing mutual communication between CAL and employees, building a safe working environment, we provide employees with a happy workplace and an enjoyable lifestyle.

Employee Development

CAL emphasizes on the development of employees and ensures the training courses enhance their skills. CAL also improves the competencies of the Company's managers at various supervisory levels, and cultivate managerial capabilities and perspectives among personnel with potential for advancement.

Sound Training System and Framework

CAL has established a sound training system and framework to train aviation professionals. We adopt diversified training methods, including on-site and online training courses, invest in training hardware and software. CAL values the functional development of employees and integrates fundamental aviation training with hands-on practice. In addition, CAL organizes management training and general aviation training in line with the Company’s development strategy for all managerial levels and employees with potential on a regular basis to improve their horizons and expertise, enhance their knowledge and skills, help employees with different expertise understand each other, and foster cooperation between units.

The Training Advisory Committee has been established to plan annual education and training activities for all employees based on training requirements in the CAL training framework. The primary strategic goal of CAL’s training and development program is to enhance employees’ job skills. We use the existing training framework to ensure that all employees are equipped with skills to perform their duties and job functions.

CAL as established the Talent Development Committee, chaired by the President, with senior vice presidents serving as members. The Talent Development Committee is responsible for regularly reviewing and improving training for potential talents. Each department refers potential talents to the Talent Development Committee, which then determines their qualifications and development paths. During training, potential talents are provided with appropriate job rotations and management skill training to build their management capacity and experience. In addition to the annual talent recommendations, CAL also selects talents from different levels and sets up management improvement courses and management training courses. CAL provides two-year courses based on the ranks of the employees to continue to enhance their management skills. CAL has always sought out and successfully trained many potential talents to serve as unit chiefs both at home and abroad. CAL will continue to provide them with opportunities to develop their careers, in hopes of achieving corporate sustainability.

In 2022, CAL invested about TWD 230 million in employee training and development (the average amount was approximately TWD 21,200). The total number of training hours (including onsite and online courses) totaled approximately 451,000 (the average number of hours per employee was approximately 38.76 hours), and the completion rate of training reached 96.00%.


Employee Development Programs in 2022

Employee Development Program Business Benefits Quantitative Impact of Business Benefits Proportion of Total Employees Participation in the Program

Training for Increasing Cargo Revenue

  • Strengthen cargo operation personnel’s related cargo transport professional knowledge to support the continuous introduction of new 777 cargo aircrafts
  • Increase the number of flight crew members for 777 cargo aircrafts(Training investment: around TWD 26.56 million)

Enhance cargo marketing effectiveness and fleet capacity to increase revenue from cargo aircrafts 777 cargo aircraft revenue for 2022 increased by TWD 4.886 billion compared to 2021 0.7%

Strengthen Passenger Services

Enhance cabin crew service training in response to the gradual restoration of operations after the pandemic subsides. (Training investment: around TWD 52 thousand)

Improve operational safety and service quality to increase passenger satisfaction and willingness to fly with us again Increased cabin crew satisfaction rate by 0.2% in 2022 compared to 2021 (93.0% to 93.2%) 10.2%

Sound Internal Recruitment and Rotation System

CAL is committed to upholding the principle of assigning each staff member to an appropriate position. We offer regular job rotations and internal training courses to support employees’ diverse development. Each department determines whether to rotate employees based on their labor needs. CAL has established an internal recruitment system, so that employees can participate in the selection processes in accordance with their wishes and career plans. This allows CAL to utilize its human resources in a flexible manner and ensures that employees are assigned to the most suitable positions, resulting in a win-win situation for both parties. The internal hiring rate this year (2022) was 59.80% which is higher than 2021 due to the gradually recovering business operation.

To utilize management with flexibility and to ensure that they are assigned to the most appropriate positions with improved competency, CAL conducts a management review and rotation evaluation on a regular basis. Managers working in domestic departments and outstations or joint venture companies for three years will be included in the management review and rotation evaluation based on relevant regulations.

Human Capital ROI

Through education and training, employees can grow along with CAL’s strategic and business goals. Corporate assets will also accumulate in value and provide CAL with a solid foundation for sustainable development. CAL has recently adopted the Human Capital Return on Investment (HCROI) metric as a benchmark tool. In addition to estimating earnings from investing in human capital, the metric can also be included in Company’s long-term performance indicators. Due to the impact to operational expenses of inflation (fuel prices are included) and changes from passenger / cargo proportion, the ROI in 2022 is lower than 2021, but slightly higher than 2020.


Note: Human Capital ROI = Income - [Operating expenses - (Salary + Benefits)] / (Salary + Benefits) Details of Employee Development Programs to Accommodate the Company’s Business Objectives for 2022

Industry-Academia Collaboration

CAL has a wealth of practical experience sound aviation training facilities and courses. We actively support the “Industry-Academia Collaboration for Technical Colleges and Universities and Talent Cultivation” initiative promoted by the Ministry of Education and we have promoted the campus talent development program since 2013. CAL has cooperated with colleges and universities nationwide to offer internship programs that last for six months to one year in a wide variety of fields. CAL also offers interns scholarships and allowances and arranges training courses for them. To start an internship, interns are required to pass the training courses first. CAL will continue to strengthen industry-academia collaboration and provide students with opportunities to gain aviation expertise and make their career plans, and thus help CAL recruit potential talents.

As a result of the pandemic in 2022 and as most sites for internships are located in the vicinity of airport operations, CAL only accepted one intern for education technology and visual design (Tamkang University) in 2022. CAL restored ground service internships (49 students / 14 schools) in the second half of 2022 when the pandemic subsided. We will continue to restore operations based on changes in the pandemic. Mandarin Airlines organized industry-academia collaboration (14 students / 6 schools) in 2022.


Continuous Support for TALENT in Taiwan


To strengthen the sustainable competitiveness of talents in Taiwanese society and support the talents with global companies, CAL announced that we will continue to support “TALENT in Taiwan” on March 6, 2023 to jointly promote sustainable talent development with “Common Wealth Learning” and multiple companies in Taiwan. CAL is committed to strengthening company products and services, continuing to provide professional training that covers all fields of expertise, and passing on the Company’s culture and values based on the Company’s business strategy. In support of the “diversity, equity, and inclusion” initiative advocated by TALENT in Taiwan in 2023, CAL’s annual training focuses on “sustainability, care, and harmony”. We planned courses related to inter-generational harmony in hopes of encouraging employees of all generations to work and prosper together, maximize teamwork, and support the Company’s sustainable development. We hope to use the project of hope for talent development to develop every worker, strengthen their professional skills, and create better career development and a brighter future.

CAL joins TALENT in Taiwan

Employee Rights

CAL attaches great importance to the opinions and well-being of our employees. In addition to regular reviews of employees’ salary and benefit and labor-management meetings, CAL has established a number of communication channels and activities to enhance cohesion. CAL also respects the independence of labor unions in accordance with the law and promotes positive communication with labor unions.

Salary and Benefits

CAL firmly believes that employees are the most valuable assets and that it is important to protect both employee benefits and shareholders’ equity. For these reasons, CAL provides competitive salaries and benefits for all employees. The salary and benefit package of each employee will not differ according to gender, race, religion, political affiliation, or marital status. Whenever the minimum wage of a particular global location is raised, we promptly review our salary standards and make necessary adjustments in a timely manner. In 2022, CAL’s average salary increase was 4.4%. Employees who are required to work overtime due to the nature of their employment received reasonable overtime pay in accordance with regulations. No employee was forced to work against his or her will.

Male / Female Salary Ratio of CAL Group in 2022 (Female Salary is 1)

Company Base Salary Bonus Remuneration
Business Operations 1.17 1.05 1.09
Flight and Cabin Crews 1.12 1.00 1.05
Maintenance Personnel 1.09 1.00 1.03
Others 1.16 1.02 1.08
Company Base Salary Bonus Remuneration
Business Operations 1.02 1.13 1.08
Flight and Cabin Crews 1.56 3.49 2.77
Maintenance Personnel 1.32 1.68 1.50
Others 1.11 1.26 1.18
Company Base Salary Bonus Remuneration
Business Operations 1.30 1.57 1.37
Flight and Cabin Crews 3.4 2.49 3.19
Maintenance Personnel 1.31 3.69 1.72
Others 1.39 2.06 1.60

Note 1: Remuneration = base salary + bonus

Note 2: Female salary is 1 in this Salary Ratio Table.

Note 3: Flight and cabin crews: Flight and cabin crews include pilots and flight attendants, pilots were mostly male, while flight attendants were mostly female. Pilots’ salaries are higher than flight attendants’, resulting in a large difference in the male / female salary ratios. Others: others include executives higher than the rank of vice president, auditors, accountants, information technology personnel, and other employees that are not within the aforesaid categories.

Note 4: Base salary: Basic pay; bonus: pay outside base pay.

Unpaid Leave

Benefits and Compensatory Leave

Paid Sick Leave

Year-end Bonuses / Dividends

CAL Retiree Association

Employee Benefits

Annual Leave Scheme

Childcare

Breastfeeding Environment

Group Health Insurance

Commuting

Flexible Work Hours

Concessional Flight Tickets

Employee Stock Ownership Trust

Resignation Program

Psychological Counseling

Health Examination

Work from Home

Sport Initiatives

Pension Scheme

CAL attaches great importance to the rights and interests of our employees. CAL reports the management of the pension reserve fund to the Labor Pension Reserve Supervisory Committee on a quarterly basis. Prior to the end of each year, CAL allocates the amount required for the following year based on actuarial calculations and relevant laws and regulations. In terms of allocation rates, the rate for the new labor retirement plan is 6%; the rate for the old labor retirement plan is 15%, which reaches the statutory upper limit, and this amounts have been fully allocated in accordance with Paragraph 2, Article 56 of the Labor Standards Act to ensure that employees receive the retirement benefits to which they are entitled.

Salary, Benefits and Pension Reserve Fund of CAL Group in 2022

Item 2020 2021 2022
Salary 13,659 13,660 17,372
Benefits 261 216 197
Pension Reserve Fund 6,241 6,514 7,437
Item 2020 2021 2022
Salary 850 896 700
Benefits 3.69 2.48 3.6
Pension Reserve Fund 390 436 400
Item 2020 2021 2022
Salary 720 519 527
Benefits 4.29 3.31 2.15
Pension Reserve Fund 1.54 0.86 0.62

Unit: TWD million

Note 1: Benefits offered by CAL / Mandarin Airlines included travel allowances, allowances for the elderly, scholarships for employees’ children, Labor Day gift money, spring parties, and anniversary expenses.

Note 2: Benefits offered by Tigerair Taiwan included travel subsidies, club allowances, birthday cash gifts, Mid-Autumn Festival and Dragon Boat Festival gift vouchers, spring parties, and family day activities.

Unpaid Parental Leave

CAL has set up a sound unpaid parental leave system, allowing employees to take care of their families while retaining their positions with CAL. Moreover, In addition to the 8-week maternity leave with pay for employees before and after childbirth, they can also apply for 5 days (7 days from 2023) paid paternity leave before and after their spouses’ childbirth. If the period of paternity leave coincides with a business trip or a regular day off or public holiday, paternity leave may be taken within 15 days following the business trip or holiday. CAL offers better leave than that stipulated in the Gender Equality in Employment Act.

Unpaid Parental Leave of CAL Group in 2022

Employee Communication

Each and every employee matters to CAL. We maintain multiple channels of communication with our employees, such as regularly scheduled labor-management meetings, and strive to find solutions to problems. We have established an employee care mailbox, a sexual harassment mailbox with an associated grievance hotline, and also a “Speak Your Mind” employee communication mailbox. In addition, our Team+ internal company messaging software enables employees to express their opinions and make suggestions at any time. When facing significant operational changes that will affect employees, CAL gives notice in compliance with relevant labor regulations and promptly communicates with labor unions and employees. Information on material issues and employee rights is made available on CAL’s website or e-mailed to all employees. When employees express concerns about certain internal regulations or practices, CAL seeks to clarify the issue and communicate with the employees more frequently.


Versatile Communication Channels


Labor Unions

CAL cooperates with different labor unions and remains committed to communication and negotiation. We also show the same respect to all unions in accordance with law. As CAL continues to communicate with labor unions, CAL did not have any major labor disputes or strikes in 2022. In particular, the China Airlines Employees Union (CAEU), which has the highest participation rate of CAL employees, is a nationwide trade union of the aviation industry and a member of the Taiwan Confederation of Trade Unions. There are six subordinate branches under CAEU, which are classified based on the location of members / business:

  • Branch 1 : Divisions in Head Office
  • Branch 2 : Flight Operations Division
  • Branch 3 : Cabin Crew Division and In-flight Supply Chain & Marketing Division
  • Branch 4 : Maintenance Division, Engineering Division, and Quality Assurance Division
  • Branch 5 : Taipei Branch, Ground Service Division, and Cargo Sales, Marketing & Service Division
  • Branch 6 : Kaohsiung Branch

There are six subordinate branches within the Mandarin Airlines Employees Union (MDAEU):

  • Branch 1 : Divisions in Taipei Head Office
  • Branch 2 : Flight Operations Division and Operation Control Center
  • Branch 3 : Inflight Services Department
  • Branch 4 : Customer Service Division (Taipei, Kinmen, and Taitung)
  • Branch 5 : Engineering & Maintenance Division
  • Branch 6 : Customer Service Division (Taichung, Magong, Hualien, and Kaohsiung)

All employees of CAL, with the exception of the senior managers as stipulated in the union constitution, have joined the China Airlines Employees Union, and are governed by a collective agreement signed by both parties in 2002. The collective bargaining agreement was the first in the domestic aviation industry and the parties renewed the agreement for the sixth time on December 16, 2021. After CAL concluded negotiations with the Pilots Union Taoyuan, they signed a collective bargaining agreement on December 29, 2021 In January 2017, Mandarin Airlines entered into a collective bargaining agreement with the Employees Union. The agreement includes union assistance, labor-management cooperation, dispute resolution, employment and termination, working hours, leave and vacation, salary, allowances and bonuses, personnel transfers, rewards, disciplinary actions, benefits, training, and occupational safety and health clauses. The parties negotiate the renewal of the agreement every three years. Due to the continuation of a collective bargaining agreement before labor and management renew the contract, the stipulations concerning working conditions in the collective agreement remain applicable in accordance with the law during the transition period.

CAL / Mandarin Airlines cooperates and communicates with CAEU/MDAEU through various channels as a partner and based on mutual dependence, and the two parties have established various channels of communication over the years. All resolutions will be handled once they are reported. In addition, meeting minutes taken at labor-management meetings held at the Head Office are published and made available to all employees on CAL’s website / Mandarin Airlines’ website. CAL / Mandarin Airlines is dedicated to maintaining harmonious labor-management relations through open, efficient channels of communication. In 2022, due to the pandemic, CAL and the CAEU reached an agreement to hold two labor-management meetings in writing at the beginning of the year when the Company was affected by the pandemic. A total of six meetings were held throughout the year to take into account both labor-management communication and joint pandemic prevention. Mandarin Airlines and MDAEU convened labor-management meetings each quarter in accordance with laws and convened four meetings in 2022.

Union Participation Rate of CAL and Mandarin Airlines

Note 1: The number of CAL participants refers to the number of people being members of CAEU in the year (including employees in Taiwan); hourly-basis employees, interns, contracted employees, and executives higher than the rank of vice president are not included.

Note 2: The number of Mandarin Airlines participants refers to the number of people being members of MDAEU in the year (including employees in Taiwan below the rank of vice president (inclusive) and expatriate executives in Mainland China); temporary employees (interns), executives transferred from CAL, and employees in Mainland China are not included.

Note 3: Tigerair Taiwan does not have a labor union currently.

Note 4: The collective bargaining coverage rate of CAL / Mandarin Airlines is equal to the labor union participation rate.

Employee Engagement

CAL has established diversified and unobstructed communication channels to listen to employees’ suggestions attentively in line with its belief that employees are the Company’s most important asset. Through an employee satisfaction survey, CAL understood employees’ opinions of and needs for the Company and each unit, which served as a reference for CAL to provide a stable work environment. This would further increase employees’ work efficiency and create a virtuous circle-based excellent corporate culture. CAL conducted the employee engagement survey from December 5 to 23, 2022 by appointing a professional consulting company to organize an anonymous online questionnaire survey. The survey covered seven major dimensions, including corporate culture, leadership, job & career, employee engagement, work environment, compensation and benefits, and COVID-19. In the Questionnaire, we have the question which corresponding to Job satisfaction, Purpose, Happiness, and Stress such as “Overall, I am satisfied with my current job”, “My performance goals are clearly set to define what I am expected to achieve in my job”, “My coworkers and I have a good working relationship.”, “My working requirements and schedule allows me to balance work and personal life.”, etc.There were 5,057 effective questionnaires (the effective response rate was 57.9% with 2,518 male respondents who accounted for 49.8% and 2,539 female respondents who accounted for 50.2%). According to the results of the survey, the employees’ overall approval was highest for compensation and benefits. it was followed by employee engagement, corporate culture, connection with the Company during the COVID-19 pandemic, job & career, leadership, and the work environment. The overall score was 7.8 points, which was a significant increase compared to 6.4 points in 2019, particularly for compensation and benefits.

As the pandemic devastated the global aviation industry, CAL used the employee engagement survey to learn whether employees received the Company’s support during the pandemic and find out whether employees’ career plans have been changed by the pandemic. CAL also wanted to learn about the impact of the pandemic on employees’ willingness to be assigned to foreign branches and affiliates, and therefore conducted a survey of eligible managers and employees in non-supervisory roles in 2022 on their willingness to be assigned overseas. The response rate was 100%. Overall, 55% of the surveyed employees are willing to be assigned to overseas branches and 62% of the surveyed employees are willing to work in domestic affiliates. A more in-depth analysis of the management showed that 65% of the managers are willing to work in foreign branches and 83% of the managers are willing to work in domestic affiliates. The results showed that despite the pandemic and the mounting challenging employees must face when they are assigned to overseas branches or affiliates, more than half of the employees are willing to accept new challenges for CAL and management personnel are also supportive. It is evident that the work ethics of CAL employees are not affected by the pandemic and they will stay with the Company through the difficulties.

CAL hopes to use the two types of surveys to learn about employees’ thoughts about the Company and their career development. We aim to work with employees to create a more harmonious, healthy, and sustainable company.


Protection of Employees' Rights during the COVID-19 Pandemic

The impact of the COVID-19 pandemic persisted in 2022 and caused significant losses to the global aviation industry. To take good care of its employees, CAL continues to implement policies to streamline manpower (temporary hiring freeze, relaxation of regulations on suspension of work without pay, manpower adjustments, and special project leave) with the joint efforts of labor and management. CAL also actively supports the government's disease prevention policies, encourages employees to vaccinate, and provides necessary support (e.g., half a day of official leave on the day of each COVID-19 vaccination and allowing employees to take vaccination leave if they feel unwell within 3 days after the vaccination) and measures for separating employees in the office or work from home to protect employee health and ensure safety at the workplace.

Healthy and Safe Workplace

CAL adhere to the belief of “respect life, safety first”, according to the international certification standard ISO45001, discussed with labor representatives and signed by the chairman and general manager, the “Occupational Safety and Health Policy” was announced on December 1, 2016 and reviewed every year. The “Occupational Safety and Health Policy” was applicable to all employees, contracted employees, outsourced manpower and contractors in its own operations. CAL has established an Occupational Safety and Health Committee in accordance with law. The committee is tasked with the objective of preventing occupational hazards and protecting the safety and health of all employees by reviewing, coordinating, and making recommendations pertaining to safety and health related matters. The President acts as the chairperson. One deputy chairperson and one executive secretary are appointed. Members consist of vice presidents, occupational health and safety employees, engineers, and medical personnel from the designated divisions / departments as well as representatives appointed by labor unions. A meeting is held once every three months to review and analyze occupational incidents. All incidents are followed up and reported to the management so that related health management solutions can be subsequently developed. In 2022, one safety and health proposal was reviewed and discussed, which has been closed. Meeting minutes were published on the EIP website. A total of 144 occupational safety issues were reported, and all 144 were improved and closed with an achievement rate of 100%.

Five Major Goals of CAL's Occupational Safety and Health